Math question on how to do risk management

Discussions about Money Management and Risk Control.
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oem7110
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Math question on how to do risk management

Post by oem7110 » Tue Mar 16, 2010 9:51 am

If I am running 10 systems, and each has 51% winning ratio, then I would like to maximize the profit and minimize the lost by managing the credit on each trade.
Let assume the initial equity is $10000 for each system, the total initial equity is $100000 for 10 systems.
Does anyone have any suggestions on how to do this risk management?
Thanks in advance for any suggestions
Eric

sluggo
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Post by sluggo » Tue Mar 16, 2010 10:14 am

I suggest: simulation. It would be a good way to familiarize yourself with the possibilities.

oem7110
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Post by oem7110 » Tue Mar 16, 2010 10:34 am

sluggo wrote:Simulation would be a good way to familiarize yourself with the possibilities.
Simulation is just curve-fit data to find the best solution at this moment, but those curve-fit setting might change in different time period.

Is there any static approach about geometric growth in Math's world to control this risk management?
Thanks everyone very much for any suggestions
Eric

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